2. Marketing Strategy for launching
new toothbrush,Colgate Precision in
the market
Problem Statement
3. Colgate Oral
Care Business
● World market leader in oral care
products
● Extensive overseas reach
● Held 43% of world toothpaste
market
● Held 17% of world toothbrush
market
● 1991-1995 plan for launching new
products
5. The Precision
Toothbrush
● A technical innovation by colgate
● Effective in plaque removal
● Three different length bristle for
reaching the far end in teeth
● 35% more effective in plaque
removal
● Effective in gum protection
7. Consumer
Analysis
● Broadly classifying there are three
consumers groups:-
○ Therapeutic Brushers
○ Cosmetic Brushers
○ Uninvolved Brushers
● Each segment has different
expectations from toothbrushes
8. ● Clearly company can attract the
majority i.e of therapeutic users
● Research indicates that baby boom
generation concerned about health
of their gums
● Willing to pay premium price
● With good marketing and pricing
strategy 33% indifferent users can
be attracted
Consumer
Research Analysis
9. Competitor
Analysis ● Oral-B,Johnson & Johnson
,Procter & Gamble major
competitors in super
premium segment
● Other brands offering
coupons,refunds etc to get
edge
● Relative expenditure on
advertisement is more
10. Strengths
● Leader in oral care products
● Highest volume market share of
22.2%
● Extensive overseas reach
● Active R&D department
11. Weakness
● Introduction of Precision may
cannibalize the sales of Colgate
Plus by 20%
● Media expenditure of CP is
significantly less than that of rivals
● Lack of dental endorsement
● Brands like Oral-B and J&J have
large dollar market share
12. Opportunities
● Upcoming generations are
becoming more health
conscious
● Good advertisement and dentist
endorsement can attract the
customers who make unplanned
purchases
● Super premium segment can
help in increasing market shares
● Extensive competition in Super
Premium segment because of lot
of products in this segment
● Competitors launching new
products with additional features
● Incentives given by other brand
to consumers
Threats
14. Mainstream Positioning
● Will make a broader appeal of
being the best most effective
brush in the market
● CP can have increase in market
share by 10%
● Increase in sales
● Large amount of revenue will be
generated
● Could cause diversion in marketing
fund from other products like
Colgate Plus towards itself
● Could cause cannibalization of
market share of Colgate Plus by
about 20%
● Result in inadequate supply which
could adversely affect brand
Benefits Risks
15. Niche Positioning
● CP could command price higher
than Oral-B
● Target consumers more open to
pay higher prices
● Can be later broadened to
mainstream position
● Less erosion of market share of
other toothbrush products of CP
● Less revenue will be generated
as compared to mainstream
positioning
● Net income increase much
lesser than mainstream
positioning
● Will reach to limited section of
consumers
Benefits Risks
18. Colgate Precision Precision Colgate
● Estimated 20% cannibalization of
Colgate Plus
● Will have the support of well
established brand of colgate
● Build brand equity of colgate
● Unchanged effect on the sales of Colgate
Plus
● Product could sustain on its own
I would recommend to launch it as Precision by colgate
20. ● CP should show research results in their advertisement concluding
colgate precision to be 35% better than other toothbrushes in
plaque removal
● Conduct surveys with some sample audience and show their
results
● Heir top dentists to endorse their brand
● Invest more in marketing sector to compete with rivals without
reducing marketing budget of colgate plus
21. Recommendations
● Niche positioning of the Precision
toothbrush
● Why??
○ Can be launched at higher cost
than its competitors
○ Initially demand can be met by
the current capacity of the
company
○ Reduce cannibalization of
Colgate Plus
○ No SKU drops
● After an year CP can broaden it
to mainstream position
● Why??
○ Provide time for increasing
production
○ Bring more revenue to
company
○ Product will gain recognition
and loyalty
Initially at Launch Future Aspects